ORBOTECH LTD.

RECONCILIATION OF GAAP TO NON-GAAP RESULTS

U.S. dollars in thousands (except per share data)

 (Unaudited)

3 months ended

12 months ended

March 31

December 31

2016

2015

2015

Reported operating income on GAAP basis

$23,352

$20,278

$94,704

Equity based compensation expenses

1,680

889

3,816

Amortization of intangible assets

6,295

8,918

30,224

Gain from the sale of the Thermal activity

(628)

Non-GAAP operating income

$31,327

$30,085

$128,116

Reported net income attributable to Orbotech Ltd. on GAAP basis

$15,754

$11,801

$56,771

Equity- based compensation expenses

1,680

889

3,816

Amortization of intangible assets

6,295

8,918

30,224

Gain from the sale of the Thermal activity, net of tax effect

(628)

Tax adjustments re non-GAAP adjustments

(729)

(949)

(46)

Share in losses of associated company

150

100

615

Non-GAAP net income

$23,150

$20,759

$90,752

Non-GAAP earnings per diluted share

$0.53

$0.48

$2.09

Shares used in earnings per diluted share calculation-in thousands

44,062

42,860

43,322